LIHTC Investor Schedules: Follow the Model Beyond the Equity Price

Keep three different schedules distinct

The project’s operating cash flow, the investor’s equity contribution schedule and the delivery of tax benefits are different views of the transaction. They are related, but none should be substituted for another.

For example, a large contribution at construction closing does not itself establish the first year of credit delivery. Keep the contribution milestones, placed-in-service assumptions and lease-up inputs explicit so each schedule can be reviewed on its own terms. The construction draw schedule guide follows the contribution dates into the financing need.

Complete the dates before relying on the figures

Start with the planned construction and placed-in-service dates, permanent closing and the lease-up assumptions required by the schedule. If portions of the project enter service at different times, make the modeled shares and dates reconcile.

The IRS’s Form 8609-A instructions describe the annual credit computation and the first-year modified percentage. That is a reason to preserve lease-up and credit-period assumptions in the model, rather than treating the annual allocation as an identical tax-year result in every circumstance.

The Console identifies inputs needed before it can draw a schedule. Resolve those items rather than filling them with the earliest date or most favorable assumption simply to make the result appear. An unanswered question is more useful than a precise-looking figure based on an undocumented choice.

Trace the budget into depreciation and amortization

A development budget combines costs with different treatments. Land, building components, financing costs, organization costs and reserves do not all become the same kind of deductible expense. Their classification and timing should be reviewed alongside the underlying documents.

EZFeasi’s Investor view builds from the completed run, shows the basis reconciliation and supports the relevant classifications and timing inputs. It also separates rule explanations from modeling conventions so a reviewer can inspect why a figure appears.

Use IRS Publication 946 as a primary reference for depreciation concepts and applicable guidance. The schedule remains dependent on the project’s facts and elections; a software classification is not a substitute for the tax adviser’s conclusion.

Follow reserve money through the account

A reserve deposit is a movement of cash into an account, not automatically a current operating expense or tax deduction. Review the account’s opening balance, funding at closing, periodic deposits, interest, spending and ending balance separately.

The new reserve schedules draw on the model’s capitalized reserves and replacement-reserve assumptions, with additional account inputs. They let the reviewer inspect spending cycles, interest and lender-held balances, with checks that explain whether the account movements tie.

Account terms matter. The rate earned, whether interest remains in the account and the ability to use a balance should follow the transaction documents. For context, the OCC’s escrow-account rule recognizes lender discretion over account terms. Do not assume every reserve earns the same rate or is available for general project spending.

Carry the financial model into investor review

For a new-construction model, carry the selected credit structure, project dates and lease-up assumptions into the Investor schedules. Review credit delivery, deductions and reserve balances beside the financial model that produced them.

Use credit delivery, depreciation and reserve schedules to prepare a more focused investor conversation. Keeping the assumptions connected gives the team a consistent starting point for reviewing partnership economics.

Explore the Investor engine and bring a project to a walkthrough. We can follow the model into the schedules, inspect the unresolved inputs and show what still needs to be confirmed with the investor and tax team.